Website of the UK government
Please note that this website has a UK government accesskeys system.
Main menu
Page menu
Money, tax and benefits
What happens if you're suspected of benefit theft?
If you're suspected of committing benefit theft, you may be visited by officers or asked to attend an interview to discuss your claim. Your benefit may be suspended while the matter is looked into. If this happens, you should receive a letter telling you so.
What is benefit theft?
If you deliberately fail to report a change in your personal circumstances or are dishonest about information supporting your claim, you are treated as committing benefit theft. If you're prosecuted for benefit theft you could be fined or get a prison sentence. In all cases, you will have to pay the money back.
Examples of benefit theft
Benefit fraud is a criminal offence which may be committed in several ways, such as:
- not reporting you are now living with a partner
- not reporting you are receiving other benefits
- not reporting any savings or not reporting the right amount
- claiming for children who have left home
- not reporting you have started work, or started to earn money
- not reporting you have inherited money
- not reporting you are going abroad, living abroad, or have changed address
Overpayment of benefits
If you've been paid too much benefit this is called an overpayment. It's treated as benefit theft if you have:
- deliberately withheld information from your benefits office
- given false information that may lead to you receiving benefits you're not entitled to
Reporting changes in circumstances
You need to tell your benefits office about any changes in circumstances as soon as possible. They'll tell you if it affects your benefit.
Some changes may mean you're entitled to new or additional benefits, but others could mean you no longer qualify for benefit, or should receive a lower amount. You may be overpaid if the benefits office doesn't know about your changed circumstances.
If you deliberately fail to report a change in your personal circumstances you are treated as committing benefit theft. You will have to pay the money back and if you're prosecuted for benefit theft - you could be fined or get a prison sentence.
What happens after an investigation
Once officers have collected facts about your case a decision will be made on whether or not to take further action. If there’s evidence that you’re committing benefit theft, any of the following may happen:
- you may be prosecuted
- you may be asked to pay a penalty as an alternative to prosecution
- your benefit may be reduced or withdrawn
- you will be asked to repay the overpaid benefit
Loss of Benefits
If you’re convicted of two separate benefit theft offences, you may find your entitlement to certain benefits is reduced or withdrawn for a disqualification period.
This is known as the 'Two Strikes' sanction, and you'll be notified if it's applied to your benefits.
Sanctionable benefits
Benefits which can be withdrawn or reduced in this way are called sanctionable benefits, and include:
- Income Support
- Employment and Support Allowance
- Jobseeker's Allowance
- Incapacity Benefit
- Housing Benefit
Disqualifying benefits
Disqualifying benefits are not sanctionable themselves, but two benefit theft offences involving them may lead to a Two Strikes sanction against other benefits. Examples include:
- Retirement Pension
- Pension Credit
- Disability Living Allowance
- Attendance Allowance
- Child Benefit
Some benefits, such as Tax Credits and Statutory Sick Pay, are not involved in the Two Strikes sanction process at all.
Where to get advice
If you have any questions about your benefits, a benefits claim or an investigation, it's a good idea to contact your benefits office. You may have made a genuine mistake, or be unsure if something applies in your particular case.
If you’re worried about being suspected of benefit theft, you may want to get independent advice from the Citizen’s Advice Bureau.
Legal advice
If you’re facing prosecution for benefit theft or being asked to pay a penalty as an alternative to prosecution, it’s a good idea to seek legal advice from a solicitor, or consult an experienced adviser.
The Community Legal Service (CLS) directory provides details of all solicitors, advice agencies and information providers across England and Wales who hold or have committed to its quality mark.
How to appeal against a decision made about your benefits
You have the right to dispute or appeal against any benefit decision, including decisions based on the results of an investigation.
More useful links
In this section...
Additional links
Access keys
